CONCEPT MAP
Australian Consumer Law
When does the Australian Consumer Law apply?
The Australian Consumer Law (ACL), which is contained in Schedule 2 of the Competition and Consumer Act 2010 (Cth), commenced on 1 January 2011 and applies to all Australian businesses. The ACL replaces 20 National, State and Territory laws to create one national consumer law. As under the previous legislation known as the Trade Practices Act 1974 (Cth), the Australian Competition and Consumer Commission (ACCC) enforces the law.
Note: All the cases in your textbook refer to old sections of the Trade Practices Act because the ACL did not start until 2011. However, they still represent precedent and you can use them because the ACL largely adopted the provisions in the old Trade Practices Act.
Australian Consumer Law – Flow Chart
Misleading or Deceptive Conduct – Section 18
Unconscionable Conduct
Unconscionable Conduct – “Unwritten Law” (section 20)
Meaning
Unconscionable Conduct – Goods and Services – section 21 (business v consumer and business v business)
False or Misleading Representations – Goods and Services (section 29(1)
A person must not, in trade or commerce, in connection with the supply or possible supply of goods or services or in connection with the promotion by any means of the supply or use of goods or services, make a false or misleading representation: Section 29(1)
(a) that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use
Case example: Hartnell v Sharp Corporation of Australia Pty Ltd ;ACCC v Cadbury Schweppes Pty Ltd
(b) that services are of a particular standard, quality, value or grade
(c) that goods are new
(d) that a particular person has agreed to acquire goods or services
(g) that goods or services have sponsorship, approval, performance characteristics, accessories, uses or benefits
(h) that the person making the representation has a sponsorship, approval or affiliation
(i) with respect to the price of goods or services
Case example: Trade Practices Commission v Cue design Pty Ltd
(j) concerning the availability of facilities for the repair of goods or of spare parts for goods
(k) concerning the place of origin of goods
(l) concerning the need for any goods or services
(m) concerning the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy: TPC (Miller) v Fiona’s Clothes of Centrepoint Pty Ltd
Please refer to other cases in the Lecture Notes and the Textbook.
Misleading or Deceptive Conduct
False Representations / False and Misleading Statements
Furniture and Bedding Concepts Ltd (“FBC”) owns and operates Sleep City and Everyday Living Stores. In its Spring catalogue, FBC advertised bedding and furniture in the form of “Now $X, save $Y”. The save amounts were based on FBC’s internally set recommended retail prices, not the prices which the products were offered, or sold, for a reasonable time immediately before the sale.
Manufacturer Liability
Manufacturer is: strictly liable for defective goods (i.e. no need to prove breach of duty of care); concurrently liable with the supplier (consumer guarantees); AND can be liable under other consumer protection provisions.
Defective Goods
The manufacturer is liable if:
Unless one of the defences applies (section 142)
Other potential areas of manufacturer liability
Remedies for breach of ACL
